Wednesday, January 21, 2009

Bad News About the Big Banks

Posted by Jarvis Holliday On 1/21/2009 No comments
After watching picturesque, historic, and inspiring images of President Barack Obama's inauguration and celebration all day yesterday, I awoke to much of the same this morning. But CNN broke a little from the round-the-clock coverage and recap of the events to offer some other news, though still related. When talking about the troubling economy Obama has inherited and that we're all facing, CNN flashed a simple graphic that contained this information:

Bank stock prices decline since election day
Citibank 81%
Bank of America 79%
Wells Fargo 59%

That's how much value the three big banks have lost in just two and a half months. While analysts (and loud talkers) like Suze Orman stress that the state of the stock market is separate from the state of the economy, saying that Americans shouldn't rest their everyday economic concerns and fears on how Wall Street is doing, you can't help but worry. Especially here in Charlotte. We've all been anticipating the previously announced job cuts at Bank of America due to their acquisition of Merrill Lynch, and cuts at Wells Fargo because of their purchase of Wachovia. With BofA and Wells Fargo's stock prices continuing steep declines since their major deals, it's only reasonable that we should expect even more changes than previously announced.

If you paid attention to Obama's inaugural speech yesterday, he told us it's only going to get worse before it gets better. I say it's time we all got serious about this economy. Serious, not scared. Do things differently than you had in the past. The partying is over. And I don't think Obama will even get a honeymoon.


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